On August 1, 2010, Wellington Appliances purchased 75 refrigerators for $55,000

Question

On August 1, 2010, Wellington Appliances purchased 75 refrigerators for $55,000 cash and also paid $1,500 transportation costs relat $50,000 on credit; however, the seller ed to this purchase. On the same date, Wellington purchased 100 dishwashers for paid the $1,200 freight. The credit terms for the dishwashers were 2/10, On August 3rd, Wellington determined that 5 of the refrigerators were defective, so they were returned to paid for the the seller. Wellington paid for the dishwashers on August 9th. On August 10th, Wellington purchased 90 microwave ovens for $9,000 on credit with terms 1/10, n/30. The seller paid the freight. Wellington microwave ovens on August 21st. Wellington uses a perpetual inventory system. Prepare any Necessary Journal Entries for the purchases by Wellington: Refer to the information presented for Wellington Appliances. On August 12th, Wellington sold 15 dishwashers to customers for $800 each. Wellington paid $200 for these dishwashers when it purchased them from the supplier on August 1st. On August 15th customers returned two dishwashers. Prepare all of Wellington's journal entries to record the sale and returns.

Explanation / Answer

Solution:-

August 1:-

(a)Refrigerator A/c Dr. 55000

Transportation cost 1500

To Cash 56500

(b)Dishwashers A/c Dr 50000

To A/c Receivable 50000

August 3:-

Cash A/c Dr 3667

To Refrigrator 3667

(To record returned refrigrator)

9 August:-

A/c Receivable A/c Dr. 50000

To cash 50000

10 August:-

Microwave A/c Dr 9000

To A/c Receivable 9000

21 August:-

A/c Receivable Dr 9000

To cash 9000

(B)

August 12:-

Cash A/c Dr. 12000

To Dishwasher 12000

August 15:-

Dishwasher a/c Dr. 1600

To Cash 1600

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.